Fresh Del Monte Stock Falls As Q4 Sales & Earnings Miss Expectations

Fresh Del Monte Produce Inc FDP shares are trading lower in premarket on Monday.

The company reported fourth-quarter sales growth of 0.4% year-on-year to $1.01 billion, missing the analyst consensus estimate of $1.03 billion.

The increase in net sales was driven by higher net sales in the company’s fresh and value-added products segment, primarily due to higher per unit selling prices.

Adjusted EPS of $0.26 missed the analyst consensus of $0.37.

Gross profit jumped 9.9% Y/Y to $68.7 million, and the profit margin expanded 60 basis points to 6.8%.

The operating margin was 3%, and operating income for the quarter was $30.3 million versus an operating loss of $113.4 million last year.

Adjusted EBITDA decreased to $35.2 million versus $37.8 million last year. Adjusted EBITDA margin was 3.5%.

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The operating cash flow for the twelve months totaled $182.5 million.

The company’s Board of Directors approved an increase in the quarterly dividend from $0.25 to $0.30. The next quarterly dividend will be paid on March 28, 2025, to shareholders of record on March 10, 2025. Additionally, the Board also approved a $150 million share repurchase program

The company held $32.6 million in cash and equivalents as of December 27, 2024. Long term debt as of the end of 2024 decreased to $244.1 million from $400.0 million as of the prior-year end.

“Our full-year 2024 results reflect the effectiveness of our strategic focus and operational improvements. This success, achieved despite facing several challenges in 2024, was primarily driven by the exceptional performance of our fresh and value-added products segment, particularly pineapples, avocados, and fresh-cut fruit, which continue to fuel our growth and deliver strong gross margins for the Company,” said Mohammad Abu-Ghazaleh, Fresh Del Monte’s Chairman and CEO.

Price Action: FDP shares are trading lower by 3.53% at $29.79 in premarket at the last check Monday.

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